Approval Sheet

This Strategic Paper of “JOLLIBEE FOODS CORPORATION”

preferred and submitted by group for partial fulfillment in BACHELOR IN SCIENCE AND
BUSINESS ADMINISTRATION major in FINANCIAL MANAGEMENT has been examined and
is recommended for acceptance and approval.

Dr. Isaias Borres

Adviser

The following Panelist are

Dr. Isaias Borres

Adviser

Accepted and approval in partial fulfillment of the requirements for the degree
BACHELOR IN SCIENCE AND BUSINESS ADMINISTRATION major in FINANCIAL
MANAGEMENT.

MELINDA BAUTISTA Ph.D

Dean of College in Business and Accountancy

October 29, 2010

 A Corporate Strategic Paper of

Jollibee Food Corporation

Strategic Paper

Presented to the Faculty of

College of Business and Accountancy

University of Caloocan City

Camarin, Campus

In Partial Fulfillment of Requirements in the degree

Bachelor of Science in Business Administration

Major in Financial Management

Jhon Robert D. Narag

Andrew M. Nacion

Mark Joseph A. Mago

Christian Mark Cabintoy

Hermie Mary G. Cahiles

Miles P. Baliquia
 ACKNOWLEDGEMENT

Making this study will not be possible without the help and support given to us by the

persons who we cherished and care the most.

To our parents, for their undying love, support and care they’ve given to us. Without

them we would not have reach this far. They’re the one whose responsible bringing us

to what we are now.

To our professor, Dr. Isaias Borres for teaching us how to be responsible in doing this

Corporate Strategy Paper and for guiding us on the right path. Without him, we may not

be able to accomplish this study with retentiveness.

To our classmates and friends from FMGT 4th year, especially to all the 2dianz for

always being there to serve us our constant companions. The things we shared are

really overwhelming that without you guys this would have been impossible. You are the

best guys!
 DEDICATION

We dedicate this to all the people who become part of our life. Especially to the

persons who’s always there and very supportive in all our undertakings.

Most of all, we would like to dedicate this to our Lord.

 TABLE OF CONTENTS

EXECUTIVE SUMMARY i

Objective i

Brief Methodology i

Major Finding’s ii

Recommended Strategies and Policy ii

CHAPTER I: INTRODUCTION OF THE STUDY 1

Background of the Study 1

Description of the General Context 1

Methodology 5

Scope and Limitation of the Study 6

CHAPTER II: THE COMPANY PROFILE

Mission/Vision 7

Goals 8

Organization Structure 8

History 10

CHAPTER III: THE COMPANY AND ITS EXTERNAL ENVIRONMENT 12

Environmental Scanning 12

Socio Cultural 12
 Technological 13

Economic 14

Political 15

Industry Analysis 18

Bargaining power of supplier 18

Risk of entry by potential competitors 19

Threat of substitute products 19

Rivalry among established firm 19

Bargaining power of buyers 20

Competitive analysis 20

Grouping of competitors 21

Strategic mapping 24

CHAPTER IV: THE COMPANY AND ITS INTERNAL ENVIRONMENT 25

Analysis of organization structure 25

Analysis of organization culture 25

Function Analysis 26

Marketing 26

Production 29
 Finance 30

Human Resource 35

Management Information Technology/IT 35

CHAPTER V: THE SWOT ANALYSIS 37

Strengths 37

Weakness 37

Opportunities 37

Threats 37

CHAPTER VI: THE CORPORATE STRATEGIES 38

Grand strategies 38

Generic strategies 39

Functional strategies 40

CHAPTER VII: RECOMMENDATION 41

CHAPTER IX: CONCLUSION 42

BIBLIOGRAPHY 43
 Executive Summary

Objectives

The importance of this study is to give an idea about why Jollibee Food

Corporation to be the best tasting QSR in the Philippines. Now a days JFC plays a big

part in choosing what is the best fast food chain to be chosen by the Filipino community.

And also in order for us to be knowledgeable why it is the no. 1 fast food even though

there’s a lot of foreign resto existing like McDonald in our country.

This study is conducted to be able to know what is the strategic plan used by

JFC to be survive even there is economic crisis and also to helps other entrepreneur on

how to operate their own business effectively.

Brief methodology

We conducted this research study by searching the official website of Jollibee

Food Corporation on www.jollibee.com.ph for some important information regarding on

their current status, their history, and achievements. Some other data had been

gathered by doing some interview on their former JFC crew for their previous

experience working in Jollibee.

For their current financial status we got their financial statement to Security and

Exchange Commission which is JFC is registered. We also tried to be their customer for

us to observe and to find some improvement needed by JFC.

Major findings

The Jollibee Foods Corporation is holding the biggest market share when it

comes in food industry and because of this many company are rising and now entering

the market. The taste preferences of their customer changes and if make an action into

it, they may loss some of their customer. At present Jollibee only have 600 stores

nationwide and international compare to Mc Donald’s, Jollibee Foods Corporation is

outnumbered when it comes in their stores.

Recommended strategies and policy

In order to be on the top, Jollibee Foods Corporation must do or apply this

recommendation such as:

• Maintain the Filipino values by keeping Jollibee Food Corporation a Filipino own

company.

• Encourage Franchisee not only in the Philippines but also abroad.

• It’s time for them to target the higher class in the society.

• Think of new and innovative product.

• Maintain tight monitoring when it comes to their competitor and new entrants.
 CHAPTER I

Introduction of the Study

Background of the study

This chapter discusses the essential factors that made the Jollibee Foods

Corporation to be the best quick serving restaurant in the Philippines and abroad.

It also discusses how the study was undertaken using the appropriate research

method.

Description of the general context in which the problem is to be viewed and

discussed:

Jollibee Foods Corporation (PSE: JFC) is the parent company of Jollibee a fast-

food restaurant chain based in the Philippines. Among JFC's popular brands are

Jollibee, Chowking, Greenwich, Red Ribbon, and Manong Pepe's. Since its inception,

Jollibee has become an increasingly profitable fast-food chain with 686 restaurants in

the Philippines and 57 in other countries employing 29,216 workers. Including all its

brands, JFC has 1,804 stores worldwide and total sales of more than US$1 billion as of

December 2008.

Undisputed leadership

As the country's leading fast food chain, Jollibee has grown exponentially on all

aspects on operation. From a handful of stores 32 years ago, Jollibee now boasts of

more than 600 stores and over 50 international stores.

Expanding market coverage

To achieve its long-term goal to be the country’s food service leader, Jollibee

acquired Greenwich Pizza in 1994. A year later, the company obtained the franchise of

Delifrance, an international food company. These moves expanded Jollibee’s

penetration in the pizza-pasta and French cafe-bakery segments. In 2000, the strategic

acquisition of Chowking solidified the company’s position as the dominant leader. The

move gave it leadership in the Oriental quick-service restaurant segment.

Recipe for success

Jollibee’s rapid growth is due to its superior menu line-up, creative marketing

programs, and efficient manufacturing and logistics facilities. It is made possible by well-

trained teams that work in a culture of integrity and humility, fun and family-like.

As a corporate citizen, Jollibee is also committed to give back to its host

communities through meaningful and lasting socio-civic projects.

A triumph for and of the Filipino

Jollibee dedicated its continuous success to the Filipinos who have been there

from the very start.

Jollibee is so well-loved every time a new store opens, especially overseas;

Filipinos always form long lines to the store. It is more than home for them. It is a

stronghold of heritage and monument of Filipino victory.

Expansion and acquisitions

The company acquired 80% of Greenwich Pizza in 1994, enabling it to penetrate

the pizza-pasta segment. From a 50-branch operation, Greenwich has established a

strong presence in the food service industry. In early 2006, Jollibee Foods Corp. bought

out the remaining shares of its partners in Greenwich Pizza Corp., equivalent to a 20%

stake, for P384 million in cash.

In 2000, the company acquired Chowking, allowing Jollibee to be part of the

Asian quick service restaurant segment. In 2007, Jollibee acquired the Chinese fast-

food chain Hongzhuangyuan.

Jollibee purchased 70% of Taipei restaurant Lao Dong in June and Chun Shui

Tang tea house in 2006. In 2004, Jollibee acquired Chinese fast food chain Yonghe

Dawang for $22.5 million. Jollibee entered into a joint-venture contract with US-based

Chow Fun Holdings LLC, the developer and owner of Jinja Bar Bistro in New Mexico, in

which Jollibee will have a 12% stake for $950,000.

Products and locations

Jollibee is an American-style fast-food restaurant with Filipino-influenced dishes

specializing in burgers, spaghetti, chicken and some local Filipino dishes. In the

Philippines, Jollibee serves Coca-Cola products for its beverages; in overseas markets,

the chain serves Pepsi products.

Currently the largest fast-food chain in the country, it also has locations in

the United States, Saudi Arabia, Hong Kong, Vietnam,

Malaysia, Indonesia, Dubai and Brunei.

Mascot

Jollibee, the large bee mascot dressed in a blazer, shirt, and chef's hat

introduced by the brand in 1980 is probably the most widely recognized character in the

Philippines. Other characters have been phased out by late August 2010.

Name Year introduced Represents Field

Jollibee 1980 Main franchise mascot Leader of Jollibee
Chickee 1987 & 1993, discontinued Chickenjoy
Lady
1993, discontinued Milkshakes
Moo
Mico 1985, discontinued Milkshakes
Champ 1984, discontinued Champ Premium hamburger
Hetty 1984 Jolly Spaghetti Cheerleader
Twirlie 1988 Jolly Twirl Singing & Dancing
Popo 1985 Jolly Crispy Fries Games & Sports
Yum 1989 Yumburger Hi-Technology

Objective of the Study

The importance of this study is to give an idea about why Jollibee Food

Corporation to be the best tasting QSR in the Philippines. Now a day’s JFC plays a big

part in choosing what is the best fast food chain to be chosen by the Filipino community.
And also in order for us to be knowledgeable why it is the no. 1 fast food even though

there’s a lot of foreign restaurant existing like McDonald in our country.

This study is conducted to be able to know what is the strategic plan used by

JFC to be survive even there is economic crisis and also to helps other entrepreneur on

how to operate their own business effectively.

Methodology

Sources and data gathering procedures:

• www.sec.gov.ph and going to its main branch – for issuance of the

recent copy of financial statement of Jollibee Food Corporation.

• www.jollibee.com.ph- for their general context regarding on their

establishment, its history and other information about the firm.

• Jollibee SM Fairview, Pasong Putik, Novaliches,Quezon City

* Former Crew of JFC

- Andrew Nacion

- Miles Baliquia

- Hermie Mary Cahiles

- Mark Joseph Mago

Scope and Limitation of the Study

This study has mainly focuses about the JFC strategic plan and its overall

operation. Certain researches are being conducted and made to know the factors that

would help the Jollibee to remain at the top.

 It involves individuals, organizations and other groups to acquire essential

information that helps our researchers in generating facts needed in this study.

It also emphasized studies from its history, achievement and other information

related to its aggregate internal and external operations.

This study is mainly focuses about the JFC strategic plan.

CHAPTER II

The Company Profile

This chapter discusses that Jollibee Foods Corporation is a customer focused

and quick serving restaurant which strictly emphasizes its company’s Mission, Vision
and Goals. Organizational structure plays a vital role on achieving the company’s

objectives. It serves as the basic guideline and framework of the firm.

MISSION:

To serve great tasting food, bringing the joy of eating to everyone.

VISION:

We are the best tasting QSR..

The most endearing brand...

that has ever been...

We will lead in product taste at all times...

We will provide FSC excellence

in every encounter...

Happiness in every moment...

By year 2020, with over 4,000 stores worldwide,

Jollibee is truly a GLOBAL BRAND. (And the Filipino will be admired worldwide)

GOALS:

JFC is set achieve its vision of becoming a leading shared services organization,

creating value to business partners through customer focus, cost leadership and

organizational excellence – the very same competencies that has brought JFC to its
leadership position today. Our mission, vision and strategies cannot be achieved if we

are not guided by the principles that have shaped the Jollibee corporate culture and

made it a living testament to Filipino excellence.

ORGANIZATION STRUCTURE:

Tan, Caktiong

Chairman of the Board, President, Chief Executive Officer

Baysa, Ysmael

Chief Financial Officer, Vice President for Corporate Finance, Compliance Officer

Fermin, Isaias

President - Greenwich Business, President - Chowking Philippines

Tanbuntiong, Joseph

President - Red Ribbon Philippines Business Unit

Tanmantiong, Ernesto

Chief Operating Officer, Executive Vice President, Treasurer, Director

Tan, Untiong

Vice President for Real Estate, Corporate Secretary, Director

Gomez, Daniel

Vice President of Corporate Marketing

 Tence, John

Vice President - Corporate Human Resources

Elechicon, Erwin

Head of International Business Development for India and Indonesia

Ang, Cho Sit

Director

Chua, Poe Eng

Director

Alfonso, Felipe

Independent Director

Jacob, Monico

Independent Director

HISTORY (Establishment):

In 1975 Tony Tan Caktiong and his family opened a Magnolia Ice Cream

parlor in Cubao[4] with Jolibe as the original name. Sometime in 1978, Caktiong and his

brothers and sisters engaged the services of a management consultant, Manuel C.

Lumba. Lumba shifted the business focus from ice cream to burgers,[3] after his studies
showed that a much larger market was waiting to be served. Lumba became Caktiong's

first business and management mentor. Lumba next re-formed the name Jolibe to Jolly

Bee and made the two words form a single name, Jollibee, changing the "y" to an "i".

The Jollibee mascot was inspired by local and foreign children's books. Lumba next

created the product names "Yumburger" and "ChickenJoy". He had the company

incorporated and leased a house on Main St. in Cubao, Quezon City as the first

headquarters. Lumba formulated a long-term marketing strategy: listing up a number of

consumer promotions and traffic building schemes. Caktiong stressed that developing

internal strengths was critical. The stores were re-designed, the service transformed

into a full self-service, fast-food operation with drive-throughs. Not long after, Caktiong

and Lumba went on an observation tour in the United States, attended food service and

equipment conventions. Caktiong placed Lumba in charge of franchise development.

Definition of terms:

QSR – Quick Serving Restaurant

FSC – Food,Service and Cleanliness

USP – Unique Selling Proposition

(m)SRP – Manufacturing Suggestive Retail Price

Risk – unfortunate events that might give loss to the firm

Franchise – generally means a right or priviledge

Drive- thru - is a type of service provided by a business that allows customers to

purchase products without leaving their cars.

Self – service - is the practice of serving oneself

Part – time Job – is a form of employment that carries fewer hours a week than a full-

time job.
 CHAPTER III

The company and its External Environment

This chapter shows that Economic forces brought tremendous impact in every

company. Several factors such as Environmental Scanning, Industry Analysis and

Competitive Analysis gradually affect the outcome of the business.

Environmental Scanning

Socio-cultural:

We all know that Jollibee Foods Corporation is one of the well-known companies

not only in the Philippines but internationally. They serve great tasting food as well as

their services given to their customers.

· Customer- focus is one of the values of every Jollibee Foods

Corporation member to delight the customer by giving the best Food and

Service with passion.

· Teamwork- one of the reasons why Jollibee Foods Corporation was

a very successful firm is because they work as one body. They have their

one mission and they work for their vision so that being on the top is not

that hard for them to work for.

· Spirit of family and fun- to be a great leader you should be a good

follower, same thing as, listening is the first step to learn, so that for them it

should be a great thing to improve what they had and to reach the

success.
 · Honesty and integrity- “Honesty is the best policy”, we all know that

honest in everything we did will give the best for us. JFC also think of this.

Technological:

Thanks to the Jollibee Commissary System, ensuring the manufacture and

distribution of safe and high- quality food in the most cost-efficient manner is made

possible.

There are three Commissary System sites: Santolan, Pasig City; Mandaue City,

Cebu; and the central site in Canlubang, Laguna. The System, which operates 24/7,

manages Jollibee’s total supply chain process.

The chicken marination line can produce as many as 150,000 pieces a day while about

480,000 hamburger patties a day is turned out by the frozen patty line. The breadline is

designed to match the volume output of patties, i.e. also about 480,000 pieces a day.

The pie line can produce as much as 157,000 pocket pies in a 20-hour operating day.

Currently, pies are exported to Jollibee stores in Hong Kong, Guam, Saipan, Brunei,

and the USA. Various sauce products are processed in the ZFC sauce line including

those for the Jollibee bestsellers, spaghetti and palabok.

A professionally staffed Technical Services Team supports the maintenance of

an internationally accepted quality management system that further ensures the quality

and safety of the commissary manufactured food products. High caliber teams from

Engineering, Human Resources, Information Management, Finance and Accounting

likewise provide support to the Manufacturing and Logistics operations of the

Commissary.
 Economic:

Jollibee Foods Corporation hires at least high school graduates to be their crew

members. Work is at least 4 hours a day and payment is per hour basis. You can

arrange for time arrangement that is most convenient with your schedule. You can

check the website of Jollibee for job openings or you can visit the stores and ask the

crew members there if they are hiring new crew members. Most crew members of fast

food restaurants are working students.

A part-time job is a form of employment that carries fewer hours per week than

a full-time job. Workers are considered to be part-time if they commonly work fewer than

30 or 35 hours per week. According to the International Labor Organization, the number

of part-time workers has increased from one-fourth to a half in the past 20 years in most

developed countries, excluding the United States. There are many reasons for working

part-time, including the desire to do so, having one's hours cut back by an employer and

being unable to find a full-time job. "Part-time" can also be used in reference to

a student (usually in higher education) who takes only a few courses, rather than a full

load of coursework each semester.

People with a single part-time job fall into a number of categories. According to

the Colorado Independent, many people with a single part-time job fall in to the category

of being underemployed. People who are underemployed usually do not make enough

to meet basic needs and, therefore, do not make positive contributions to the economy.

Large numbers of underemployed people make a significant contribution to economic.

 Political:

Jollibee Foods Corporation always maintains safeties when it comes to their food

to be served to their customer.

Food safety is a scientific discipline describing handling preparation, and storage

of food in ways that prevent food borne illness. This includes a number of routines that

should be followed to avoid potentially severe health hazards. Food can transmit

disease from person to person as well as serve as a growth medium for bacteria that

can cause food poisoning.

Rep. Santiago, in filing HB 3799, is primarily concerned about the ill-effects of

food products containing genetically modified organisms (GMOs) on human

health. Consumers have the right to know whether the food they purchase contains or

was produced with genetically engineered material. The bill also seeks to establish

quarterly inspection and oversight procedures to effectively monitor if each food

processing facility is adopting measures to minimize or eliminate identifiable health

hazards.

SENIOR CITIZEN DISCOUNT

“Article 9. NO DOUBLE DISCOUNTS – In the purchase of goods and services

which are on promotional discount, the senior citizen can avail of the establishment’s

offered discount or the 20% discount provided herein, whichever is higher and more

favorable.
In cases where the senior citizen is also a person with disability (PWD) entitled to a 20%

discount under his/her valid PWD identification card (ID), the senior citizen shall use

either his/her OSCA-issued ID card or PWD ID card to avail of the 20% discount.

BUSINESS PERMIT

Before the operations of every business they need to be registered first, the

same as to the established business like Jollibee Foods Corporation.

Now a day a lot of business enterprises arose in our country. Handling a

business is not a problem for those entrepreneurs but to regulate their business they

must meet the following requirements to legally operate in the Philippines.

• DTI - "Department of Trade and Industry" Certificate of Business Name

Registration

• SEC Registration "Philippines Securities & Exchange Commission" -

Certificate of Incorporation

• BIR "Bureau of Internal Revenue" Registration

• Business Permit / Mayor's Permit

• SSS Registration / Philhealth Registration / Pag-ibig Registration

SRP

The manufacturer's suggested retail price ((M)SRP), list price or recommended

retail price (RRP) of a product is the price which the manufacturer recommends that the

retailer sell the product. The intention was to help to standardize prices among

locations. While some stores always sell at, or below, the suggested retail price.

Department of Trade and Industry is the regulator of SRP here in the Philippines.

MINIMUM WAGE

Jollibee Foods Corporation follows the same daily minimum wages rates

implemented by Department of Trade and Industry.

When it comes to wages distribution, there are different values in urban and in

rural areas nationwide.

DAILY MINIMUM WAGE RATES

National Capital Region (NCR) a/

Per Wage Order No. NCR-15 b/

Effective 01 July 2010

Minimum Wage Basic Wage

under Wage Increase Under New Minimum

Order No. NCR W.O. No. NCR Wage Rates

Sector/Industry 14 15
Non-Agriculture P 382.00 P22.00 P 404.00
Agriculture (Plantation and
P 345.00 P22.00 P 367.00
Non Plantation)
 Private Hospitals with bed
P 345.00 P22.00 P 367.00
capacity of 100 or less
Retail/Service

Establishments employing P 345.00 P22.00 P 367.00

15 workers or less
Manufacturing

Establishments regularly
P 345.00 P22.00 P 367.00
employing less than 10

workers

Industry analysis

Bargaining Power of Suppliers:

Jollibee Foods Corporation has been proven to be the market leader on quick

serving industry for several of decades now. Hence, several numbers of suppliers are

pooling around to compete on this industry specifically on meat and soda distributions.

Suppliers of JFC have a strong bargaining power over any other quick serving

restaurants because it generates larger sales volume and continuous purchasing cycle.

As a result, JFC can choose among other alternative suppliers which offers lower

prices but of the same product standard.

Risk of entry by potential competitors:

 Risk in entering new entrants may cause additional problem for the firm, it will

decrease the sales and other possible big effect to the normal operation of the

business. It also causes additional choices for the customer especially when the new

entrants have the same in line of business operation. Some of this potential competitor

might used strategies like lower their price compare to the price implemented by JFC.

One of the best examples of this is those small food carts and some other food

franchise establishment which is located in public places and malls.

Threats of Substitute Products:

Differentiated products are necessary to cater different segments and to retain

the interest of the existing customer share. Retaining the existing market share and

expanding market share both require differentiation in terms of variety of food provided

in the menu.

Rivalry among established firm:

JOLLIBEE vs. McDonald’s

The rivalry between Jollibee and McDonald’s looks likes no contest. McDonald’s

has more than 31,000 outlets in more than 100 countries out of which 3,000 outlets are

in Asia. Jollibee has only 600 outlets and over 50 international outlets. But despite these

numbers, Jollibee has captured 65% share of the hamburger market in the Philippines.

Its revenue are growing rapidly and they claim that they are the undisputed leader of the

fast food market in the Philippines. Jollibee concentrates on serving the unique tastes of
the Filipino consumer whereas McDonald’s exports largely standardized fare to

consumer around the world.

Bargaining Power of Buyers:

The major customers of Jollibee Foods Corporation are the markets segments

which are normally comprised of families and working individuals.

These buyers participate in the industry by forcing down the prices, negotiate for higher

quality and allow the competitors play against each other.

Buyers of JFC have a strong bargaining power over other quick serving

restaurants because the products offered by the company are largely standard and

undifferentiated.

As a result, buyers can choose a quick serving restaurant that offers high quality

products at reasonable cost.

COMPETITIVE ANALYSIS
 Grouping of competitors:

McDonalds Corporation Company Profile

McDonald's Corporation is the world's largest chain of hamburger fast food

restaurants, serving more than 58 million customers daily. In addition to its signature

restaurant chain, McDonald’s Corporation held a minority interest in Pret A Manger until

2008, was a major investor in the Chipotle Mexican Grill until 2006, and owned the

restaurant chain Boston Market until 2007.

A McDonald's restaurant is operated either by a franchisee, an affiliate, or the

corporation itself. The corporation's revenues come from the rent, royalties and fees

paid by the franchisees, as well as sales in company-operated restaurants. McDonald's

revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth

in operating income to $3.9 billion.

McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french

fries, breakfast items, soft drinks, shakes, and desserts. In response to obesity trends in

Western nations and in the face of criticism over the healthiness of its products, the

company has modified its menu to include alternatives considered healthier such

as salads, wraps and fruit.

KFC CORPORATION

KFC Corporation, based in Louisville, Kentucky, is the world's most popular

chicken restaurant chain, specializing in Original Recipe®, Extra Crispy®, Kentucky

Grilled Chicken™ and Original Recipe Strips with home-style sides, Honey BBQ Wings,

and freshly made chicken sandwiches.

 Every day, more than 12 million customers are served at KFC restaurants in 109

countries and territories around the world. KFC operates more than 5,200 restaurants in

the United States and more than 15,000 units around the world. KFC is world famous

for its Original Recipe® fried chicken -- made with the same secret blend of 11 herbs

and spices Colonel Harland Sanders perfected more than a half-century ago.

Customers around the globe also enjoy more than 300 other products -- from Kentucky

Grilled Chicken in the United States to a salmon sandwich in Japan.

KFC is part of Yum! Brands, Inc., the world's largest restaurant company in terms

of system restaurants, with more than 36,000 locations around the world. The company

is ranked #239 on the Fortune 500 List, with revenues in excess of $11 billion in 2008.

MANG INASAL

Mang Inasal is proud to do its share in alleviating the unemployment burden of

the country.

It is effectively stimulating economic activities in communities where branches

are situated. Local suppliers of calamansi, charcoal, banana leaves, sorbeteros,

vegetables, fish, bamboo sticks, and other ingredients, as well as LGU’s, trisikad

(pedicab) drivers, and a host of other enterprises are benefited by the presence of Mang

Inasal in their area.

Mang Inasal has steadily grown since it offered franchising. Mang Inasal has

branches in Bacolod, Iloilo, Roxas, Metro Manila, Cebu, Davao, Kalibo, Tarlac, Boracay,

Antique, Mindoro, Batangas, Pampanga, General Santos, Tuguegarao, Iligan, Bulacan,

Cavite, Baguio, Laguna, Panabo, Cagayan De Oro, Lucena Surigao, Palawan, Agusan
Del Sur, Malabon, Zamboanga Pagadian, Koronadal, Rizal, Pangasinan, Dipolog, La

Union, Ozamiz, Kabankalan As of today, Mang Inasal has 294 branches nationwide and

counting.

In Mang Inasal, “Pinagsikapan naming laging mabilis, laging masarap, at laging

abot-kaya” so that the Pinoy can truly say, “Kumbinsing!”

Strategic mapping
 JFC also want to provide value adding services in the areas of accounting,

finance and HR; employing highly efficient people, systems and process that allow them

to deliver and exceed customer expectations; and offering competitive costs in the

shared service industry through these strategies, they enable the client – the JFC Foods

Companies – to efficiently operate in the global market effectively collaborate w/

business partners and help employees to be more productive.

CHAPTER IV
 The Company and its Internal Environment

This chapter discusses that aside from the economic forces, internal factor that

comprises a company. Marketing, Production, Finance, Human Resource and

Information Technology construct the company’s functional analysis.

Analysis of Organization Structure

The famous quotation of the JFC “Bida ang Saya” is completely shown in the

whole organizational structure of the Jollibee. From the color of the sign “JOLLIBEE” in

every store, red is known for joy and good luck. The cheerful service crews who never

forget greeting every customer entering and leaving the store. The sculpture of Jollibee

a red bee with big smile and wide open arms saying “welcome to Jollibee” brings smile

and joy to every people looking at him. Lastly, the delicious taste of their foods and

accommodation measures. Jollibee means people working as busy as bee. But this bee

is working with joy in their face.

Analysis of organization culture

The Jollibee Foods Corporation concentrated and focused on the Philippines

tradition and culture which lead them to success and progress. JFC caught Filipinos

hearts by serving delicious foods in accordance to “Pinoy taste”. The love of the Pinoy

in the entertainment value were also given importance by JFC therefore, they decided

to introduce their charming mascots like Hetti, Yum and specially Jollibee. These

characters gave them the opportunity to advertise their products. Filipino core values

are shown to every customer for them to feel the hospitability and warm acceptance of
every Jollibee store. Jollibee also offer cater and party service because they knew the

love of every Filipino to parties and celebration.

Functional analysis

Marketing:

Jollibee depends on high customer traffic and tight operations management. It

offers great

Service to high volumes of people who patronize its outlets by functioning as a

well-oiled machine with close tabs on daily operations.

Jollibee focus:

USP

The unique selling proposition of the Jollibee brand is:

1. Fast, good, clean, cheap food

2. Caters to local needs (spicy needs)

3. Consistency, reliability over all its outlets.

Positioning:

Ensuring high traffic needs an emphasis on store location and positioning

Jollibee in the minds of the consumer as a place that they would enjoy eating fast food.

This entails proper branding and positioning of the service offered. Jollibee also

projected itself as world class and not a local brand.

The service that is offered should be consistent over all Jollibee stores, however

this might be a problem as the division has been slimmed recently and resources might

be stretch too far.

Product:

The product offered by Jollibee appeals to the Filipinos taste for spicy burgers.

By concentrating its resources on satisfying the Filipino palate, Jollibee has been able to

serve localized dishes that are unlike any found in the other fast food chains in the

Philippines. In addition to offering the usual French fries that accompany the meals

found in McDonald’s, KFC, Burger King and so forth.

Jollibee also serves rice or spaghetti, Filipino style. Even the burgers are cooked

exactly as Filipino’s want them done-sweeter and with more seasonings, often likened

to what a Filipino mother would cook at home.

Menus in outlets across the globe adjusted to local preferences to differentiate it

from other standardized players like McDonald’s and KFC who maintain the same

menus worldwide with minimal changes.

Jollibee even incorporated recipes from employees to truly capture local tastes.

“McDonalds entered the Philippine market in 1981 and many assumed the Big

Mac would soon dominate the market. Surprisingly, McDo’s ended up getting stung

by the bee. Jollibee has secured a 65% market share and is out pacing McDonalds

at its own game. Jollibee accomplished this by local adaptation of the menu and by

positioning the food chain as a family restaurant.”

Place:
 The location of outlets is of key importance to the marketing strategy of Jollibee.

For Example, the outlet in Hong Kong is located at Central where a large number of

Filipinos gather.

Promotion:

Local brands: Brands in local market are strong contenders and are not to be

Under estimated. Local managed brands like Jollibee in the Philippines often have the

advantage of intimate knowledge of consumer tastes and consumer preference

through local pride.

Jollibee used the wave of nationalist pride to promote a Filipino brand of

hamburger.

This strategy met with great success.

Investing in socio-civic programs designed to serve its host

communities further secured Jollibee’s position as a Filipino

company for the Filipino. Advocacy campaigns such as the early

Christmas drive “ma-Aga ang pasko sa Jollibee,” again endorsed by

Aga Mulach, the poverty housing project with Habitat

for Humanity, and the Kaya Mo Yan Kid” or “You can do it, kid!”

Campaign to encourage kids to show their potential contributed to

the company’s overall success, not only with its customers but with

all its stakeholders.

Production:
 There are three Commissary System sites: Santolan, Pasig City; Mandaue City,

Cebu; and the central site in Canlubang, Laguna. The System, which operates 24/7,

manages Jollibee’s total supply chain process.

The Jollibee Pasig City commissary has production lines for breads and sauces,

and is the distribution center for North Manila and North Luzon. In 1996, Jollibee

opened the Vismin Foods Corporation (VFC) in Mandaue City, Cebu to service the

Visayas and Mindanao areas. VFC has its own bread, pie, sauce, and frozen patty

lines.

The Laguna commissary is the biggest and most advanced in the country and

among Asia’s best. Operated by Zenith Foods Corporation (ZFC), a full subsidiary of

Jollibee, the newest commissary is on a 6-hectare property in the Calmelray Industrial

Park. Aided by custom-made mechanized equipment, the production lines are for the

marinated Chicken Joy, frozen patties and pies, breads, sauces, hotdogs and other

meat products, and dry blended goods. ZFC can service over 800 Jollibee and

Greenwich stores.

A professionally staffed Technical Services Team supports the maintenance of

an internationally accepted quality management system that further ensures the quality

and safety of the commissary manufactured food products. High caliber teams from

Engineering, Human Resources, Information Management, Finance and Accounting

likewise provide support to the Manufacturing and Logistics operations of the

Commissary.

Finance:
 2008 2009

LIQUIDITY RATIO

Acid Test Ratio = Current Asset- Cash

Total Current Liabilities

= 10,687,259,116 – 955,399,559 = 1.99 or 199 %

4,885,529,898

=12,706,409,627–578,747,371 = 2.40 or 240%

5,060,348,018

IMPLICATION: Acid test ratio and Current ratio states that JFC is liquid and has the

ability to meet its current obligations when the time they fall due. It also shows that they

have enough cash when it comes in paying debt.

2008 2009
Current Ratio = Total Current Assets

Total Current Liabilities

= 10,687,259,116 = 2.19 or 219%

4,885,529,898

= 12,706,409,527 = 2.51 or 251%

5,060,348,018

IMPLICATION: Acid test ratio and Current ratio states that JFC is liquid and has the

ability to meet its current obligations when the time they fall due. It also shows that they

have enough cash when it comes in paying debt.

Earnings per Share of Common Stock = Net Income After Tax

CommonStockOutstanding

= 1,791,201,604 = 1.45 or 145%

1,040,005,488

= 2,642,819,193 = 2.14 or 214%

 10,514,581,561

IMPLICATION : Earnings per share measured the amount of returns on each share of

common stock. Figures show that in 2008, the return on share of common stock is 1.45

and increases as the year 2009 ended.

Return on Investment = Net Income After Tax

Total Asset

= 1,791,201,604 = 0.085 or 8.5%

21,077,948,121

= 2,642,819,193 = 0.1135 or 11.35%

23,281,239,667

IMPLICATION: Return on investment measures the profitability of the business firm.

Figures show that in year 2008, 8.5% is the rate of ROI and increases up to 11.35% as

the year 2009 ended. JFC can attract more investor if they maintain a high percentage

rate.

Return On Asset = Net Income After Tax

Total Asset
 = 1,791,201,604 = 0.085 or 8.5%

21,077,948,121

= 2,642,819,193 = 0.1135 or

11.35%

23,281,239,667

IMPLICATION: Return on investment measures the profitability of the business firm.

Figures show that in year 2008, 8.5% is the rate of ROI and increases up to 11.35% as

the year 2009 ended. JFC can attract more investor if they maintain a high percentage

rate.

Return on Equity = Net Income After Tax

Stockholder’s Equity

= 1,791,201,604 = 0.14 or 14%

` 12,999,751,991

= 2,642,819,193 = 0.17 or 17%

15,177,607,558
 IMPLICATION: Return on equity measures the profit efficiency of the equity of the

stockholders. Figure show that in year 2008, 14% return on equity has been recorded

and increases up to 17% as year 2009 ended. This rate is favorable on the part of the

stockholders.

Return On Sale = Net Income After Tax

Sales

= 1,791,201,604 = 0.090 or 9%

19,812,420,160

= 2,642,819,193 = 0.117 or 11.7%

22,566,682,614

IMPLICATION: Return on sales measures net earnings for every peso of sales and also

measures the ability of the firm to control expenses. The higher the earnings on sales,

the more efficient is the firm in sustaining its expenses in monitoring its expenses but in

year 2009, it increases up to 11.7%. It shows that JFC has higher expenses but a good

income.
 Human resource:

Jollibee Foods Corporation is now the #1 EMPLOYER IN THE PHILIPPINES

Cited by the Far Eastern Economic Review. They are now globally known, because JFC

is the only Philippine company in the list of ASIA’S BEST EMPLOYERS, they ranked

#16 and the No. 1 in "OVERALL LEADERSHIP" among the top 10 Philippine

companies doing business in Asia.

This recognition is not only because they are the best in the business but also

the fact how they handle their people. The management down to the lowest position

plays a big role in JFC’s success. They give right training for their workers in order to

have the expertise in their field in order to give the 100% satisfaction to their customers.

The people are their strength and in return they give a payback to them. They

ensure the security of the employee; as a matter of fact JFC is a member of some

insurance company. They don’t hesitate to give promotions, sending their employee

abroad. JFC help their employee to change their life, being part of Jollibee team is

chance to improve one’s personality, and a way to earn money.

Management information system/ information technology:

A management information system (MIS) is a system or process that provides

information needed to manage organizations effectively. JFC use this kind of

technologies such as (POS system) in order to lessen the burden of having a manual

system.
 In the fast food industry, registers may be at the front counter, or configured for

drive through or walk through cashiering and order taking. Nowadays a cash register is

nothing vs. POS system. JFC use this kind of technology for having a fast service.

And because of technology credit cards is now acceptable as a payment in every

transaction of their customer. Jollibee is now embracing the modern way in operating

the business. In order to have fast and quality service to their customers.
 CHAPTER V

The SWOT Analysis

This chapter discusses the company’s Strengths and Weaknesses, both external

and internal environment. Hence, several threats and opportunities arise which help the

company realizes possible expansion or improvements.

Strengths Weakness

Well developed strategy Obsolete, narrow product lines

Manufacturing competence Rising manufacturing costs

Good marketing skills Poor marketing plans

Human resource competencies Poor materials management

Brand name reputation Loss of customers’ good will

Ability to manage strategic change Inadequate human resources

Opportunities Threats

Exploit new market segments competition Increase foreign competition

Widen product range Change in consumer taste

Extend cost or differentiation advantage Rise in new or substitute

Diversity into new growth business New forms of industry

Enter new related business Turn down economy

Overcome barriers to entry competition

CHAPTER VI
 The Corporate Strategies

This chapter represents different alternatives, strategies that help the company to

cope up with the growing market and technological innovations. Corporate strategies

enable the firm to adopt with the changing trends, needs and wants of people.

Grand Strategies

Jollibee’s decide to expand globally seemed to have been necessitated partly by

the economic recession plaguing South East Asian countries in the late 1990’s. while

McDonald’s decide to slow down within the Philippines, Jollibee seemed to have

adopted a dual approach – continue expanding internally in a limited way while

exploring the option of tapping new countries. Tony Kitchner said “in the light way of the

shifting competitive environment, we have taken a broader, more global view of our

business. We are leveraging the preeminent to cater to more market segments”

Jollibee planned to open more stores in Nevada, Hawaii and New York.

Commenting on the decision expanding globally, Tony said, “An important source of our

corporation is the expansion of our international business.” However, analysts were

skeptical about company’s chances of success is outside the Asia.

Generic Strategies
 Jollibee was able to attain a competitive advantage among established firms in

doing things:

· Retaining tight control over operations movement, which allowed it

to price below its competitor

· Having the flexibility to cater to the tastes of its local consumer

While Tony Kitchner was hired to develop these competitive advantage abroad

his international strategy of “planting the flag” and “targeting the expats” was executed

haphazardly and resulted in losses for the firm. His eventual dismissal was largely due

to his inability to manage intra-firm tensions.

In addition to the special understanding of the Filipino palate, Jollibee has also

mastered the countries culture and lifestyle. Jollibee lures kids with in-stores play

activities and a cast of captivating characters. Its massive jolly-bee character with the

orange jacket and the blonde spaghetti-haired girl named hetti are better known and the

loved in the Philippines than the McDonald. The well known Jolly Bee character

optimizes the Filipino spirit of lighearted everyday happiness.

Functional Strategies
 Involves managers analyzing an organization current situation and then

developing strategy to accomplish its mission and achieve its goals. To techniques

managers use to analyze formulating strategies are SWOT analysis and the five forces

model.

The five forces model of Jollibee Food Corporation:

· The level of rivalry among organizations in an industry.

· The potential for entry in an industry.

· The power of supplier.

· The power of customers.

· The threat of substitute products.

Using this model of Jollibee Food Corporation the managers would be able to

analyze its current status among its competitor and other factors that has an effect to its

operation. By the use of this, they could be able to generate new strategies that could

be useful in eliminating risk.

CHAPTER VII
 Recommendation

During the conduct of the study, the researchers have identified and came up

with the following recommendations.

In order to be on the top, Jollibee Foods Corporation must do or apply this

recommendation such as:

• Maintain the Filipino values by keeping Jollibee Food Corporation a Filipino own

company.

• Encourage Franchisee not only in the Philippines but also abroad.

• Its time for them to target the higher class in the society.

• Think of new and innovative product.

• Maintain tight monitoring when it comes to their competitor and new entrants.

CHAPTER VIII
 Conclusion

This chapter represents factors based from the findings gathered and analyzed in

this research, we were able to derive at these following conclusions.

Therefore the researchers conclude that Jollibee Foods Corporation is still

leading and the No.1 fast food chain in the country because of their successful strategy.

On the other hand being No.1 can cause then problem such as maintaining their

position and the need of more effective marketing strategy.

The researchers find that the service here is different each time; sometimes they

are quick, sometimes they are slow (and this doesn't depend on the amount of people

waiting, they depends on if the food is already ready and waiting...). Most of the time,

they are friendly, which is a plus.

Bibliography
A. Books:

• Principles of Marketing by Philipp Kotler

• Contemporary Financial Management by McGuigan, Kretlow, and Moyer

B. Unpublished thesis, Internent and others:

• http://www.ehow.com/about_5402374_parttime-jobs-influence-

economy.html#ixzz12n80ekWf

• http://elearning.utcc.ac.th

• http://www.nwpc.dole.gov.ph/

• Jollibee Foods Corporation. (March 2010). Jollibee Foods Corporation 2009

Annual Report (SEC Form 17-A)

• Jollibee RP's most admired company for 3rd straight year. (December 16,

2000). Philippine Daily Inquirer.

• Jollibee Website

• former crew

- Andrew M. Nacion

- Mark Joseph A. Mago

- Miles P. Baliquia

- Hermie Mary G. Cahiles